ExxonMobil has disclosed that the Production Sharing Contract (PSC) for the Erha deepwater oil project has been extended to 2042, as part of its renewed investment commitment to Nigeria’s upstream sector.
The oil major made this known during a visit to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) headquarters in Abuja, where it briefed the Commission on its planned multi-billion-dollar deepwater investments.
Speaking during the visit, Senior Vice President, Deepwater, ExxonMobil Upstream Company, Mr. Hunter Farris, said the company was encouraged by Nigeria’s improved investment climate, prompting it to “renew our vows to Nigeria.”
He explained that the extension of the Erha Production Sharing Contract to 2042 would support ongoing life-extension works aimed at restoring the Erha Floating Production Storage and Offloading (FPSO) facility to maximum performance.
Farris also revealed that ExxonMobil is preparing for additional deepwater investments, including planned drilling activities at the Usan field and progress toward a Final Investment Decision (FID) on the Owowo deepwater project.
According to him, the Owowo project contains about one billion barrels of recoverable resources and is estimated to cost between $7 billion and $8 billion, with FID expected as early as next year.
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He further disclosed that the Bosi oil and gas field, located adjacent to Erha, could attract fresh capital investment of between $15 billion and $16 billion if developed with a new FPSO and pipeline infrastructure.Farris noted that the proposed investments demonstrate ExxonMobil’s renewed commitment to Nigeria’s oil and gas industry and its participation in the ongoing deepwater rejuvenation in the country.
He commended Nigeria’s improving regulatory environment, stating that reforms have significantly enhanced ease of doing business and strengthened investor confidence.
Responding, the Commission Chief Executive of NUPRC, Mrs. Oritsemeyiwa Eyesan, welcomed ExxonMobil’s renewed commitment and expressed optimism over the planned investments.“To hear that FIDs are likely next year is very exciting, and rest assured we are willing to support you,” she said.
Eyesan added that the Commission remains committed to encouraging and safeguarding petroleum investments that align with Nigeria’s national interest and economic growth.
